Question

Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.30 per guest check-in, $20.00 per room cleaning, and $4.00 per served meal (not including food). Tara Washington visited the hotel for a 3-night stay. Washington had 6 meals in the hotel during her visit. Determine the total monthly activity-based cost for Washington during the month. Round your answer to the nearest cent. $

Answer 1

Answer:

Total cost= $40.3

Explanation:

Giving the following information:

The activity rates associated with each activity pool are:

$8.30 per guest check-in

$20.00 per room cleaning

$4.00 per served meal (not including food).

Tara Washington visited the hotel for a 3-night stay. Washington had 6 meals in the hotel during her visit.

Total cost= 8.30*1 + 20*1 + 4*3= $40.3